Sigoma calls for longer-term funding settlementsSpecial Interest Group of Municipal Authorities has called for major reform of the local government funding system to make it fairer. It called for resource allocations to be made over a period of three years, set by an independent body. Business rates not required for sustainability/needs equalisation purposes could be used as reward for economic growth within the area, Sigoma said in a report.

Northants set for services shake-upNorthamptonshire County Council has voted to move to a commissioning model for its services. The plan, similar to that adopted by London Borough of Barnet, will see a small core council team commission four new specialist social enterprises to deliver council services. The council says the move will not initially affect its current shared services arrangements to deliver HR and finance services with a group of other councils, although after an initial period, the social enterprises would be able to procure these from the wider market.*

Procurement rules come into force
New rules have come into force to make public procurement more accessible to small and medium enterprises. The reforms are being implemented through part four of the new Public Contracts Regulations 2015. The measures will abolish a pre-qualification stage for procurements below EU thresholds, require contracting authorities to ensure prompt payment to suppliers, and to ensure contracts are advertised in one place.

Right to Buy embarrassment for ministers
The government has almost halved its estimate for the number of new homes built with the receipts from Right to Buy purchases. The Department for Communities and Local Government originally said 4,795 new homes had been started by councils between April 2012 and September 2014 through the scheme. However, the department this week revised the figure down to 2,298.

Oxford JV to build new homes
Oxford City Council has signed an agreement with a joint venture in which it is a partner to fund 354 affordable homes. The development in a new planned neighbourhood in Barton will be built at a cost of £47.9m. The development will be delivered by Barton Oxford, a joint venture between the council and developer Grosvenor.

North Tyneside land deal probe
Northumbria police are investigating a land deal involving North Tyneside Council. The council, in a joint deal with One North East, paid £9.2m for the part of the Swan Hunter shipyard site just two years after it was sold for £2.5m, according to reports.

Scottish local government spending rises
Local government net revenue expenditure in Scotland was £10.5bn in 2013-14, up 1.9% the previous year. According to data released by the Scottish Government, the highest spending services was education, with net expenditure of £4.6bn. Social work is the next largest service with net expenditure of £3.0 billion (29 per cent of net expenditure).

Local tax commissioners unveiledA commission to examine local tax reform in Scotland will be co-chaired by local government minister Marco Biagi and David O’Neill, president of the Convention of Scottish Local Authorities. The commission will consist of 11 members made up of politicians, along with representatives from the finance, law and advisory sectors. It will report to the Scottish Government in the autumn.

Councils in legal services move
Three South West councils have announced their intention to create a shared legal services partnership. Mendip District Council would act as host authority, and staff from Taunton Deane Borough Council and West Somerset Council would transfer across. The new partnership could be up and running by April.

Waste management initiatives quantified
Partnership working, automation of customer contact, back office systems and contract renegotiation are the most common strategic initiatives taken by councils to reduce waste collection costs. According to a survey by the Chartered Institute of Waste Management, operational measures include rationalising collection rounds and optimising routes, charging for bulky waste collections, and extending vehicle and equipment life.

Pickles: “more savings possible”
Communities secretary Eric Pickles this week said that councils can continue to produce efficiency savings. Speaking before the communities and local government committee, he said that a 2% reduction in procurement costs would generate £1bn a year. He said: “I still think that there is room for greater efficiencies inside local government. It is certainly my view that it is possible to produce good local government at a still lesser cost.”

Consultants call for services opt-out
Communities should have the ability to opt-out of council delivery structures and create their own “free services” according to the Management Consultancies Association. A report by the MCA released this week called for a new “conference” to consider the role councils should play in future. It said the conference could “examine whether other forms of citizen involvement are needed to reflect the changing demands and requirements of modern life.

Partnership aimed at cyber protection
CIPFA’s Counter Fraud Centre (CCFC) has announced a new partnership with security firm BAE Systems Applied Intelligence to develop counter fraud and cyber security services for public services. The programme will make innovative technology and best practices more accessible to the public sector, according to a statement.

Register for the Room 151 Weekly Email Digest

Latest tweets

Inspector slams Northamptonshire officers and members for financial failings: A government inspector has delivered a withering assessment of senior officers at Northamptonshire County Council (NCC), as well as the council’s attempts at… dlvr.it/QL8Dct#localgov

IFRS9 overrides could be in place for new financial year: Statutory overrides to some parts of the new IFRS9 accounting standard could be introduced in time for the new financial year, a government official has revealed. Gareth Caller, head… dlvr.it/QL81HR#localgovpic.twitter.com/bRx0Ax3rrD

Treasurers see Brexit undermining financial sustainability: Almost two thirds of senior council finance officers believe that Brexit will have a negative impact on councils’ financial sustainability, according to a Room151 survey. The 2018… dlvr.it/QL7BJc#localgovpic.twitter.com/5JNLZ1ubuE

Spring statements sees rates revaluation brought forward to 2021: The next business rates revaluation will take place in 2021, a year earlier than expected, chancellor Philip Hammond has announced. Last year, Hammond announced that revaluations… dlvr.it/QKxvYy#localgov

Richard Harbord: A spring statement with little to offer local government: The chancellor Philip Hammond attempted to put some optimism in his latest statement but, says Richard Harbord, there was little to lift the gloom for council finances.… dlvr.it/QKxvfy#localgov

Guy Ware: The business rates retention row of ducks: Business rates retention is delayed but is this an opportunity to put the funding of local services on a sustainable footing for the foreseeable future? Only if four key questions[...] dlvr.it/QKjLkG#localgovpic.twitter.com/C2xCNViBFE

Quartet of councils lined up for Municipal Bond Agency’s first issue: Four councils are poised to be involved in the The UK Municipal Bonds Agency’s debut bond issue after Moody’s gave the agency an Aa3 credit rating. Moody’s said the… dlvr.it/QKCqdp#localgov

NAO calls on Whitehall to confront long-term funding of local government: The government’s fragmented approach to oversight of council finances, and the absence of a long-term funding plan are increasing risks to statutory services, according… dlvr.it/QKBQfR#localgovpic.twitter.com/5otTR1wPa5

LPP kicks off first fixed income fund: Local Government Pension Scheme pool, Local Pensions Partnership, has launched its first fixed income fund. The £320m fund is aimed at delivering long-term risk-adjusted returns on global fixed income… dlvr.it/QK3lSM#localgov

Countdown to LATIF North treasury conference in Manchester: There are just over two weeks to go before Room151’s inaugural treasury conference for the north of England chaired by Manchester City Council’s Tim Seagrave and featuring insight from… dlvr.it/QJy2lV#localgov

Archives

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies from this website.OK